More than 20% of Americans say they will need four or more years to get their retirement plans back on track, after the toll that the coronavirus pandemic has hit on the United States economy.
This is according to new research by retirement plan provider Fidelity, which explores the impact last year of roadblocks has had on US retirement planning. Fidelity interviewed 1,204 adult financial decision makers who have not yet retired and who have at least one investment account.
The pandemic had far-reaching effects, with 82% of respondents saying it negatively impacted their retirement plans to varying degrees and a third saying that factors like job loss and withdrawals from their retirement accounts delayed them by two to three years. For some, it will take even longer: 12% of respondents say they are more than five years late.
In all, 55% of Americans said their retirement goals have been postponed for at least two years. And about 80% of respondents say that last year made them reevaluate their financial priorities.
But it is not all doom and gloom: 36% of Americans are more confident that they will reach their retirement goals than before last March, and 45% are “hopeful or determined” that they will get back on track.
Fidelity also found that 33% of Americans have a financial plan for retirement, while 31% think about it “in great detail”.
Financial stress levels have also dropped compared to a similar survey conducted by Fidelity at the same time last year. Respondents were less concerned about their ability to pay bills than before the pandemic, with 32% listing this as a concern, compared with 40% previously.
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